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Frequently Asked Questions about FICO Scores Details on late or missed payments (“delinquencies”), bankruptcies, and collection itemsNumber of accounts that show no late payments, or are currently paid as agreed2. The Amounts You Owe - Approximately 30% of a FICO Score is based on this information: Amount owed on all accountsAmount owed on different types of accountsBalances owed on certain types of accountsNumber of accounts which carry a balanceHow much of the total credit line is being used on revolving credit accountsHow much is still owed on installment loans, compared with the original loan amountsCredit utilization is one of the most important factors evaluated in this category, considers the amount you owecompared to how much credit you have available. While lenders determine how much credit they are willing toprovide, you control how much you use. FICO’s research shows that people using a high percentage of theiravailable credit limits are more likely to have trouble making some payments now or in the near future, compared topeople using a lower level of available credit.Having credit accounts with an outstanding balance does not necessarily mean you are a high-risk borrower with alow FICO Score. A long history of demonstrating consistent payments on credit accounts is a good way to showlenders you can responsibly manage additional credit.3. Length of Credit History - Approximately 15% of a FICO Score is based on this information:In general, a longer credit history will increase a FICO Score, all else being equal. However, even people who havenot been using credit long can get a good FICO Score, depending on what their credit report says about theirpayment history and amounts owed. Regarding length of history, a FICO Score takes into account: How long credit accounts have been established. A FICO Score can consider the age of the oldest account, theage of the newest account and the average age of all accounts.How long specific credit accounts have been established.How long it has been since you used certain accounts.4. New Credit - Approximately 10% of a FICO Score is based on this information:FICO’s research shows that opening several credit accounts in a short period of time represents greater risk—especially for people who do not have a long credit history. In this category, a FICO Score takes into account: How many new accounts have been opened.How long it has been since a new account was opened.How many recent requests for credit have been made, as indicated by inquiries to the consumer reportingagencies.Length of time since inquiries from credit applications were made by lenders.Whether there is a good recent credit history, following any past payment problems.Looking for an auto, mortgage or student loan may cause multiple lenders to request your credit report, even thoughyou are only looking for one loan. In general, FICO Scores compensate for this shopping behavior in the followingways: FICO Scores ignore auto, mortgage, and student loan inquiries made in the 30 days prior to scoring, so theinquiries won’t affect the scores of consumers who apply for a loan within 30 days.After 30 days, FICO Scores typically count inquiries of the same type (i.e., auto, mortgage or student loan)that fall within a typical shopping period as just one inquiry when determining your score.5. Types of Credit in Use - Approximately 10% of a FICO Score is based on this information:FICO Scores consider the mix of credit cards, retail accounts, installment loans, finance company accounts andmortgage loans. It is not necessary to have one of each, and it is not a good idea to open a credit account you don’tintend to use. In this category, a FICO Score takes into account: 2013-2018 Fair Isaac Corporation. All rights reserved.3

Frequently Asked Questions about FICO Scores What kinds of credit accounts are on the credit report? Whether there is experience with both revolving andinstallment accounts, or has the credit experience been limited to only one type?How many accounts of each type exist? A FICO Score also looks at the total number of accounts established.For different credit profiles, how many is too many will vary depending on the overall credit picture.What is left out of FICO Scores?FICO Scores consider a wide range of information on a credit report. However, they do NOT consider: Race, color, religion, national origin, age, sex and marital statusSalary, or other employment information (however, lenders may consider this information separately)Where the consumer livesAny interest rate being charged on a credit card or other accountAny items reported as child/family support obligationsCertain types of inquiriesAny information not found in the credit reportWhat is a good FICO Score?FICO Scores generally range from 300 to 850, where higher scores demonstrate lower credit risk and lower scoresdemonstrate higher credit risk (note: some types of FICO Scores have a slightly broader range). What’s considereda “good” FICO Score varies, since each lender has its own standards for approving credit applications, based on thelevel of risk it finds acceptable. So one lender may offer its lowest interest rates to people with FICO Scores above730, while another may only offer it to people with FICO Scores above 760.The chart below provides a breakdown of ranges for FICO Scores found across the U.S. consumer population.Again, each lender has its own credit risk standards, but this chart can serve as a general guide of what a FICO Score represents.Score range800 or HigherRatingExceptional740 to 799Very Good670 to 739Good580 to 669FairLower than 580Poor What FICO Scores in this range meanWell above the average score of U.S. consumersDemonstrates to lenders that the consumer is an exceptional borrowerAbove the average of U.S. consumersDemonstrates to lenders that the consumer is a very dependable borrowerNear or slightly above the average of U.S. consumersMost lenders consider this a good scoreBelow the average of U.S. consumersSome lenders will approve loans with this scoreWell below the average of U.S. consumersDemonstrates to lenders that the consumer is a risky borrowerFICO’s research shows that people with a high FICO Score tend to: Make all payments on time each monthKeep credit card balances lowApply for new credit only when neededEstablish a long credit historyWhat are score factors?Score factors are delivered with a consumer’s FICO Score, these are the top areas that affected that consumer’sFICO Scores. The order in which the score factors are listed is important. The first factor indicates the area thatmost affected the score and the second factor is the next most significant influence. Addressing these factors canbenefit the score.What are the minimum requirements to calculate a FICO Score? 2013-2018 Fair Isaac Corporation. All rights reserved.4

Frequently Asked Questions about FICO ScoresA credit file must contain these minimum requirements (Note: The requirements vary slightly for FICO ScoresNG): At least one account that has been open for six months or moreAt least one account that has been reported to the consumer reporting agency within the past six monthsNo indication of deceased on the credit file (if you shared an account with a person reported as deceased, it isimportant to check your credit file to make sure you are not affected)How can FICO Scores help me?A FICO Score gives lenders a fast, objective and consistent estimate of your credit risk. Before the use of creditscoring, the credit granting process could be slow, inconsistent and unfairly biased. Keep in mind that FICO Scoresare only one of many factors lenders consider when making a credit decision. Here’s how FICO Scores may benefityou.Get credit faster - FICO Scores can be delivered almost instantaneously, helping lenders speed up credit card andloan approvals.Unbiased credit decisions - Factors such as your gender, race, religion, nationality and marital status are notconsidered by FICO Scores. When a lender uses your FICO Score, they’re getting an evaluation of your credithistory that is fair and objective.May save you money - A higher FICO Score can help you qualify for better rates from lenders—generally, thehigher your score, the lower your interest rate and payments.More credit available - Because FICO Scores allow lenders to more accurately associate risk levels withindividual borrowers, they allow lenders to offer different prices to different borrowers. Rather than making strictly“yes-no” credit decisions and offering “one-size-fits-all” credit products, lenders use FICO Scores to approveconsumers who might have been declined credit in the past. Lenders are even able to provide higher-risk borrowerswith credit that they are more likely to be able to manage.Do I have more than one FICO Score?To keep up with consumer trends and the evolving needs of lenders, FICO periodically updates its scoring model,resulting in new FICO Score versions being released to market every few years. Additionally, different lenders usedifferent versions of FICO Scores when evaluating your credit. Auto lenders, for instance, often use FICO AutoScores, an industry-specific FICO Score version that’s been tailored to their needs.Why is my FICO Score different than other scores I have seen?There are many different credit scores available to consumers and lenders. FICO Scores are the credit scores usedby most lenders, and different lenders may use different versions of FICO Scores. In addition, FICO Scores arebased on credit file data from a consumer reporting agency, so differences in your credit files may create differencesin your FICO Scores.Why do FICO Scores fluctuate/change?There are many reasons why a score may change. FICO Scores are calculated each time they are requested, takinginto consideration the information that is in your credit file from a consumer reporting agency at that time. So, as theinformation in your credit file at that CRA changes, FICO Scores can also change. Review your key score factors,which explain what factors from your credit report most affected a score. Comparing key score factors from the twodifferent time periods can help identify causes for a change in a FICO Score. Keep in mind that certain events suchas delinquent payments or bankruptcy can lower FICO Scores quickly.New CreditDoes a FICO Score alone determine whether I get credit? 2013-2018 Fair Isaac Corporation. All rights reserved.5

Frequently Asked Questions about FICO ScoresNo. Most lenders use several factors to make credit decisions, including a FICO Score. Lenders may look atinformation such as the amount of debt you can reasonably handle given your income, your employment history,and your credit history. Based on their review of this information, as well as their specific underwriting policies,lenders may extend credit to you even with a low FICO Score, or decline your request for credit even with a highFICO Score.What is a typical FICO Score for someone new to credit?FICO Scores are generated by complex mathematical algorithms based on unique credit report data, so there is no“typical” or “entry-level” score. While someone new to credit may have difficulty scoring in the highest scoreranges due to a limited number of active accounts and length of history, it is possible to have a FICO Score thatmeets lenders’ criteria for granting credit. FICO Scores consider the extent to which people can demonstrate agood track record of making payments on time. In fact, payment history is more important for FICO Scores (about35%) than length of credit history (about 15%).How is a credit history established?There are a few ways to establish a credit history, including the following. By applying for and opening a new credit card, a person with no or little credit history may not get very goodterms on this credit card—such as a high annual percentage rate (APR). However, by charging small amountsand paying off the balance each month, you won’t be paying interest each month so the high APR won’t hurtyour financial position.Those unable to get approved for a traditional credit card may be able to open a secured credit card to buildcredit history, provided the card issuer reports secured cards to the consumer reporting agency. This type ofcard requires a deposit of money with the credit card company. Charges can then be made on the secured card,typically up to the amount deposited.With both traditional and secured credit cards, keeping balances low, payi

Although each consumer reporting agency formats and reports this information differently, all credit reports contain basically the same categories of information. Identifying Information - Your name, address, Social Security number, date of birth and employment information. This information is not used in calculating FICO